The world's largest search engine, Google, has reportedly
extended an offer of around $6 billion for the e-commerce
coupon website, Groupon. According to AllThingsD, the
deal would involve an initial payment of $5.3 billion, with the
other $700 million serving as an incentive to keep current
employees.

The price does seem rather high, considering the social
shopping site has only $600 million in revenue, but industry
insiders believe that Groupon has only just begun. The
site was started just two years ago. The company operates
by offering deep discounts to members from retailers, who get
huge amounts of traffic in return.

The acquisition would be a continuation of Google's attempts to
purchase sites it cannot or doesn't want to build on its
own. The company recently purchased DoubleClick and On2
for similar reasons, and is also in the process of acquiring
ITA Software, a platform for travel e-commerce, for a reported
$700 million.

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